Question

The table below shows the estimated annual total costs and benefits of maintaining Asian elephant populations in their natural habitat.

Short answer

The new optimal point would be $37500$elephants.

Step-by-step solution

introduction

Subtracting the preceding cost or benefit yields the marginal cost or benefits a. Determine the marginal cost and benefit as follows:

step 2  The marginal cost and benefit of Asian elephant conservation:

The following table shows the marginal cost and benefit of Asian elephant conservation:

step 3  Graph showing in marginal cost and marginal benefit:

step 4  The optimal position is

b. The optimal position is where the marginal cost and benefit are equal. When the marginal benefit and $\cos t$ are equal to $25$, this happens with $30000$ elephants.

the marginal benefit and marginal cost for 7500 would be: 

C.

If the benefit is reduced by $\$10$million and the marginal cost is reduced by $\$40$million for each $7500$elephants, the marginal benefit and marginal cost for$7500$would be:

The new optimal point would be $37500$elephants.